Genesis Global Holdco LLC, and FTX Trading Ltd., two crypto companies navigating bankruptcy, have announced an in-principle agreement to resolve a dispute central to their respective Chapter 11 cases. 
Previously, FTX Trading, the now-defunct crypto exchange, had laid claim to a debt of up to $3.9 billion from Genesis Global, a contention firmly disputed by the crypto lender. This claim was subsequently downscaled to a maximum of $2 billion. Case History 
Genesis Global Capital, a lending unit under Genesis Global Holdco LLC, had raised considerable industry-wide concern when it halted customer repayments and subsequently filed for Chapter 11 bankruptcy on January 20. The mega bankruptcy filing named over 100,000 creditors, with the firm's total obligations speculated to range anywhere from $1.2 billion to a staggering $11 billion. 
Amid the ensuing industry shock, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Genesis and its ex-partner, Gemini, accusing them of the illegal sale of securities. This additional blow further complicated the company's predicament. Digital Currency Group, parent company of Genesis Global Holdco, assured its intent to consider options like an equity deal or sale to address the debts. DCG also revealed it had $150 million in cash reserves to aid in the restructuring process. Updates To The Bankruptcy Case 
In a recent update to a bankruptcy judge, the legal representatives of both companies indicated that their mutual claims would be settled in line with the agreement. Details of the settlement, however, remain undisclosed as of now. The companies intend to submit motions for approval of the deal to bankruptcy courts. 
This progress towards settlement is anticipated to be a welcome relief for Genesis creditors. They had been expecting the disagreement between Genesis and FTX to prolong the bankruptcy proceedings, potentially leading to delays in the payout of claims. With the dispute now seemingly close to resolution, the path to finalizing the bankruptcy proceedings appears clearer. 
Genesis Global's parent company, Digital Currency Group (DCG), had previously affirmed its commitment to resolving the claims against Genesis. In a letter to shareholders, DCG had expressed its optimism about reaching an agreement to resolve the bankruptcy case, offering a beacon of hope amidst the ongoing legal and financial challenges. 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Genesis and FTX Trading Nearing Resolution on Bankruptcy Dispute

Crypto Daily™

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